Arbitrage Bonds: Municipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in Treasuries until the first call date of the higher-rate issue.

 

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Arbitrage Bonds: Municipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in . . . View Full Definition

Municipal Bonds: Bonds issued to finance public improvements such as parks, schools and urban renewal projects.

Mortgage Revenue Bonds: A type of tax-exempt industrial development bond offered by state and local governments through their housing financing agencies.

Policyholder Loan Bonds: Packaged loans acquired by policyholders that are secured by the cash surrender value of the policies, and are offered by a broker/dealer as bonds.

Reset Bonds: Bonds that allow the initial interest rates to be adjusted on specific dates in order that the bonds trade at the value they had when they were issued.

Risk Arbitrage: Traditionally, the simultaneous purchase of stock in a company being acquired and the sale of stock of the acquirer. Modern risk arbitrage focuses on capturing the spreads between the market . . . View Full Definition

Mello-Roos Bonds: Based on passage of the Mello-Roos Community Facilities Act of 1982, certain housing tracts may be within what are called community facilities districts where special taxes are assessed to f . . . View Full Definition

Registered Bonds: Bonds for which the names and addresses of the bondholders are kept on file by the issuing company.

Long Bonds: Bonds with a long current maturity. The 'long bond' is the 30-year U.S. Treasury bond.

International Arbitrage: Simultaneous buying and selling of foreign securities and A.D.R.s to capture the profit potential created by time, currency, and settlement inconsistencies that vary across international borders.